The Top Down – Mega IPOs: Big Debuts, Little Edge

Mega initial public offerings (which we define as companies with a market capitalisation of $100 billion+ upon going public) have grabbed investors’ attention this year. SpaceX, a US tech conglomerate, rocketed onto the scene in June, and other behemoths are lining up to make their debut. Major equity indexes, including the Nasdaq, FTSE Russell and MSCI, have updated their rules to “fast track” these companies for index inclusion—supposedly increasing their attractiveness as an investment. But history has found IPOs in general aren’t great investments and fast-track index inclusion doesn’t change this.

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